Apple settles patent litigation with HTC

SAN FRANCISCO—Apple Inc. announced over the weekend that it settled its patent dispute with Taiwanese handset maker HTC Corp. in a deal that reportedly calls for HTC to pay Apple up to $280 million per year.

Apple (Cupertino, Calif.) announced Nov. 10 that the two companies reached a global settlement that includes the dismissal of all current lawsuits and a 10-year license agreement. The license extends to current and future patents held by both parties, Apple said.

Neither company disclosed the specific terms of the settlement. But Shaw Wu, an analyst with brokerage firm Sterne Agee estimates that Apple could be getting $6 to $8 for every Android handset that HTC sells. With HTC selling an estimated 30 million to 35 million Android handsets per year, the deal could be worth about $180 million to $280 million each year, according to Wu.

HTC also reportedly pays Microsoft Corp. $5 in licensing fees for each Android phone it sells.

Analysts have been predicting that Apple would be more aggressive in attempting to force OEMs of Android handsets to license its technology after a U.S. court awarded Apple $1 billion after high-profile patent litigation trial against Samsung this summer in Silicon Valley.

"We are glad to have reached a settlement with HTC," said Tim Cook, CEO of Apple, in a joint statement released by the companies."We will continue to stay laser focused on product innovation."

"HTC is pleased to have resolved its dispute with Apple, so HTC can focus on innovation instead of litigation," said Peter Chou, CEO of HTC, in the same statement.